House prices set to rise by 25% in the next five years
Houses for sale in the UK have tumbled to their lowest level since records began in 1978 according to a new report. The shortage of house sales has led to surveyors expecting price to rise by 25% over the next five years.
The number of houses coming onto the market has dropped for the last four consecutive months with no marked increase in the amount of homes up for sale since the end of 2013. London and the North East have seen the biggest drop in properties for sale, while Scotland is the only area to see an increase in home sales.
Surveyors stated that they were surprised that the number of properties for sale hadn’t increased after the general election.
The report found that the North West, Northern Ireland, East Anglia and the South West had the highest price rises over the past three months. The North West now has stronger near term price expectations than London.
After a slight slowdown, the London housing market now seems to be turning around. After seven months of decreasing prices, the cost of a house in London has risen for the last two months in a row.
Simon Rubinsohn from Rics said, “There had been some hope that the removal of political uncertainty would encourage more properties onto the market but the initial indications are that this is not proving to be the case.
“As a result, it is hardly surprising that prices across much of the country are continuing to be squeezed higher with property set to become ever more unaffordable.
He added, “Indeed the feedback we are getting in the survey, which points to prices at a headline rising by another 25% over the next five years, suggests that there is no real confidence that the measures necessary to deliver a meaningful boost to new supply will be put in place any time soon.”
Earlier in the week, the Bank of England revealed that homebuyers were getting the best ever deals on their mortgages, with the average home loan rate of 3.01%.
Great mortgage deals are all well and good, but without an upturn in houses for sale across the UK, many would-be home buyers look set to be stuck on the ground for the foreseeable future.